Private equity remains an attractive asset class that has outperformed the public markets over the last three- and five-year periods, according to a report by PitchBook Data Inc.
The best performers were private equity funds, which outperformed venture capital, fund of funds, mezzanine and real estate. Within private equity, it has been the large buyout funds (more than $1 billion in assets) that have posted the best returns, with a 10 percent annual return since 2006. Although venture capital funds have mostly struggled, the one exception has been the $150 million to $250 million fund size group, which continues to be a sweet spot for the asset class.
“The main take-away in the returns data is that the private equity industry is proving resilient and remains an attractive asset class for investors,” said John Gabbert, CEO and founder of PitchBook Data. “Like the rest of the financial markets, the private equity industry was rocked by the credit crisis and recession, but since the bottom in 2009, private equity returns have made significant strides in their recovery.”
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